Very High Throughput Satellite (VHTS) Market Overview (2024 - 2030)

The market for Very High Throughput Satellites (VHTS) reached a value of USD 355.61 million and is anticipated to reach USD 1153.1 million by the conclusion of 2030. It is forecasted to expand at a Compound Annual Growth Rate (CAGR) of 18.3% during the period from 2024 to 2030.

Industry Overview

Very High Throughput Satellite (VHTS) systems utilize spot beams to deliver broadband services to end-users at bit rates exceeding Terabit/s. They are particularly suitable for facilitating 5G networks due to their superior flexibility compared to VHTS, enabling them to accommodate higher traffic distributions per beam and support dynamic service delivery. The significant increase in capacity is achieved through extensive frequency reuse and spot beam technology, allowing for frequency reuse across multiple narrowly targeted spot beams, similar to cellular networks. Unlike conventional satellite technology, which typically employs a single large beam to cover broad areas or entire continents, VHTS offers substantial bandwidth capacity, primarily targeting the consumer market. While high-throughput satellites have predominantly operated in the Ka-band over the past decade, there has been a shift towards Ku-band VHTS satellites since 2017, indicating broader technological diversity in the market.

Initially, VHTS systems operated using satellites in geosynchronous orbit at an altitude of 35,786 km, sharing functionality with satellite TV craft. However, the propagation delay for round-trip internet protocol transmission via geosynchronous satellites can exceed 550 ms, adversely affecting various digital connectivity applications such as automated stock trading, online gaming, and video conferencing. Consequently, there is a growing emphasis on deploying VHTS systems in Medium Earth Orbit (MEO) and Low Earth Orbit (LEO) with altitudes as low as 600 km, reducing propagation delays to as little as 40 ms.

Impact of COVID-19 on the Very High Throughput Satellite (VHTS) Market

The COVID-19 pandemic has inflicted significant economic damage worldwide, affecting the manufacturing processes of small satellite systems, subsystems, and components. While small satellite systems remain crucial, disruptions in the supply chain have temporarily halted production activities. The resumption of manufacturing operations depends on various factors, including the extent of COVID-19 exposure, operational status, and import-export regulations. While companies may continue to receive orders, uncertainties surrounding shipping schedules persist.

The Very High Throughput Satellite market has experienced a notable response to the pandemic, with travel restrictions, flight bans, and quarantines leading to the suspension of offline activities and a surge in demand for digital solutions. Supply chain disruptions have impacted the market, although demand from the construction sector has decreased due to halted development activities in many regions.

Market Drivers :

The proliferation of technologies such as 5G networks in the telecommunications and information technology sectors is a key driver of market growth.

The increasing demand for high-throughput satellites is fueled by the need for cloud-based networking, gaming, video streaming, and other applications, contributing to market expansion during the forecast period.

Market Restraints

Budget constraints and limitations on IT spending for advanced technologies serve as significant barriers to market growth. Organizations prioritize their technology investments based on their specific needs, with developing countries often lagging behind due to technology-related challenges. These factors restrain market growth throughout the forecast period.

Very High Throughput Satellite (VHTS) Market - By Application:

• Payload
• Structure
• Power System
• Attitude Control System
• Propulsion System

Categorized by type, the Very High Throughput Satellite market encompasses Payload, Structure, Power System, Attitude Control System, and Propulsion System. Among these, the Payload Structure segment is poised to capture significant market share and maintain dominance throughout the forecast period. This projection is attributed to technological advancements within the payload domain, resulting in decreased per unit costs and heightened deployment for commercial end-users, thereby augmenting market growth prospects.

Very High Throughput Satellite (VHTS) Market - By Type:

• Broadband
• Mobility
• Enterprise
• Government
• Cellular Backhaul
• Broadcast

The broadband segment is expected to witness a substantial Compound Annual Growth Rate (CAGR), primarily driven by escalating demands for network connectivity. The imperative need to securely and reliably transmit massive data loads, particularly within military and aerospace sectors, underscores the relevance of broadband applications. These applications uphold signal strength without necessitating repeaters. Additionally, other segments are poised for growth over the forecast period, propelled by rapid technological advancements and innovations across various sectors.

Very High Throughput Satellite (VHTS) Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

Geographically, the Asia-Pacific (APAC) region emerges as the foremost contributor to the global Very High Throughput Satellite Market's expansion. This dominance is attributable to key factors such as substantial market size and a plethora of players operating within the region. However, amidst prevailing market dynamics, North America is anticipated to undergo deregulation within the telecom sector.

Over the forecast period, Asia Pacific anticipates witnessing a remarkable CAGR, primarily fueled by countries like China and Japan. Increased adoption of satellite antennas across communications, IT, aerospace, and automotive industries underpins the region's market expansion. Europe, on the other hand, is projected to experience the second-highest growth rate, driven by infrastructure modernization and escalating passenger traffic within marine and coastal tourism sectors. The demand for Low Earth Orbit (LEO) satellites to furnish backhaul networks for remote or inaccessible areas is on the rise, especially with the proliferation of 5G installations.

Very High Throughput Satellite (VHTS) Market Share by Company:

1. Airbus Group SE
2. Eutelsat S.A.
3. Hughes Network Systems, LLC
4. Inmarsat
5. Intelsat
6. Orbital ATK Inc.
7. SES S.A.
8. Space Systems Loral
9. Thales Group
10. The Boeing Company

Corporate mergers and acquisitions have facilitated players in diversifying and enhancing their service portfolios. For instance, Surrey Satellite Technology Ltd (SSTL) was entrusted with leading a study by the UK Space Agency to delineate mission requirements for a complex undertaking aimed at de-orbiting two non-operational space debris targets.

The market exhibits significant fragmentation, characterized by numerous market players vying to bolster their market share through diverse strategies. Satellite operators, in particular, are channeling substantial investments into developing Ka-band applications to expedite crucial data transmission while minimizing terrestrial infrastructure requirements. Furthermore, they are keenly focused on maintaining competitive pricing strategies, thus fostering partnerships, acquisitions, and mergers.

NOTABLE DEVELOPMENTS IN THE GLOBAL VERY HIGH THROUGHPUT SATELLITE MARKET IN RECENT TIMES:

Product Launch - In August 2021, L3Harris Technologies unveiled a demonstration series of end-to-end small satellites as part of a U.S. Air Force constellation, marking the company's responsibility in the constellation's development.